The land any improvement has been placed upon, is not insured. It does not form part of your insurance cover. Enquiry state the insurer see no major financial benefit for insuring the land, therefore it seems not an option.
However, having a site alongside the riverbank or perhaps a beach frontal site at the ocean shores, certainly support a possible risk exposed to natural disaster. What if you are compensated for the loss of your house, but your beachfront site is washed away?
Will it be possible by means of major earthworks to reconstruct the site? Will this be part of your insurance cover? Was it indicated as a possible risk? And perhaps allowance made for site reconstruction within your insurance cover?
Perhaps one should conduct a survey on how many sites are located alongside the South African coastal line of approximately 2700 kilometers. And the unknown of along our prestigious riverbanks.
By Lourens Nel – MD (Pr.Val)